In the recently revealed Budget 2024 Madani, themed “Madani Economy: Empowering the People,” the Malaysian government has earmarked a total of RM393.8 billion. This reflects a modest increase from the previous budget of RM388.1 billion, set in February 2023.
One key highlight is the government’s strong commitment to driving the New Industrial Master Plan 2030 (NIMP), with up to 10% of the total NIMP investment (RM95 billion) allocated for this purpose. This effort commences with an initial fund of RM200 million in 2024.
Additionally, RM20 million has been allocated to Think City to rejuvenate and transform downtown Kuala Lumpur into a creative capital.
Economic Development and Revitalization Highlights
1. Addressing Sick and Abandoned Projects
The government has taken a proactive approach by establishing a special task force under the Local Government Development Ministry (KPKT) to address late, sick, and abandoned private housing projects. As of August, this initiative has restored 256 sick housing projects, comprising 28,000 housing units, with a gross development value of RM23.37 billion. Furthermore, a “special guarantee fund” of RM1 billion is set aside to incentivize reputable developers to revive selected abandoned projects.
2. Public Housing
- RM2.47 billion is allocated for public housing projects (PPRs) in 2024, including RM546 million to sustain 36 PPRs, benefiting 5,100 residents.
- RM385 million is dedicated to constructing 14 affordable housing projects (Program Rumah Mesra Rakyat), involving 3,500 housing units.
- RM460 million is allocated to assist 65,000 underprivileged individuals in building or repairing house units in rural areas.
- RM100 million is designated to maintain low- and medium-cost stratified public and private housing nationwide, covering repair works on water tanks, roofs, wiring systems, and security enhancements.
- RM100 million is allocated to upgrade infrastructure and community facilities in Chinese New Villages.
- RM2.4 billion is earmarked to construct, improve, and maintain housing facilities for civil servants, teachers, hospitals, police, army, and fire brigade forces under the Special Task Force on Agency Reform (STAR).
- Permodalan Nasional Bhd (PNB) is set to manage Pelaburan Hartanah Bhd, supported by the government’s strategic land injection for housing projects in Kuala Lumpur.
3. Senior Living Care Facilities
Private nursing homes approved by the Ministry of Health will receive an industrial building allowance equivalent to 10% of the total construction expenses for either building new facilities or making modifications and improvements.
4. Stamp Duties on Property Transactions
- In 2024, a fixed stamp duty fee of RM10 will be introduced to replace the previous variable rate for real estate transfer documents.
- The government plans to impose a 4% flat rate stamp duty on memorandum of transfers on purchases by foreign individuals and companies except for permanent residents, as a measure to control property prices.
5. Housing Credit Guarantee Scheme
In 2023, the scheme received RM5 billion in funding to assist up to 20,000 borrowers with no fixed income from the gig economy in obtaining loans. For 2024, an allocation of RM10 billion is provided to expand the Housing Credit Guarantee Scheme, benefiting 40,000 borrowers in this category.
6. En-Bloc Sale
The residents’ approval threshold for en-bloc sales will be reduced from 100% to align with international practices, promoting urban renewal and the redevelopment of old buildings in cities.
7. Development of Bandar Malaysia
Under the Unity Government, the development of Bandar Malaysia focuses on optimizing strategic lands for people-centric projects, including affordable housing for veterans and Bumiputera interests. The plan also emphasizes creating parks and green spaces accessible to all Klang Valley residents.
8. Easing Conditions of MM2H
The government aims to boost tourism and foreign investments by simplifying Malaysia My Second Home (MM2H) application conditions.
9. High-Tech Industrial Development Up North
To enhance foreign investment, a high-tech industrial hub will be established in Kerian, North Perak, expanding the electronics and electrical (E&E) cluster eco-system.
Public Amenities and Climate Mitigation
- RM110 million is allocated to revitalize 150 local authority areas, repairing and enhancing hawker centers and public market infrastructure.
- RM10 million is dedicated to improving 10,000 stalls and small businesses, while RM50 million will fund the construction of 4,000 units of new commercial space. Kiosk rental fees will be waived for the first six months for business operators.
- Public toilets nationwide will receive a boost of RM150 million for refurbishments.
- RM11.8 billion is directed towards 33 high-priority flood mitigation projects.
- RM300 million will be allocated to the Natural Disaster Management Agency (Nadma), with RM100 million designated for flood mitigation efforts.
Sustainable Development Goals and Electric Vehicles
- Putrajaya will lead the way as a green city model, with solar panels added to government buildings, EVs used for official purposes, and investments in EV charging stations.
- RM2 billion is allocated for the National Energy Transition funds, alongside a significant RM200 billion fund to incentivize industries to transition to a low-carbon economy.
- The Net Energy Metering (NEM) program will be extended until Dec 31, 2024, to promote solar panel adoption.
- The government is working on a program for buying back solar energy from rooftop installations, while encouraging “Zero Capital Cost” subscription models for residential homes.
Electric Vehicles
- Rebates of up to RM2,400 are available through the Electric Motorcycle Use Promotion Scheme to encourage individuals with annual incomes of RM120,000 or lower to use electric motorcycles.
- Tax rebates for EV vehicle rentals have been extended for an additional two years.
- Individuals investing in EV charging ports can benefit from income tax exemptions of up to RM2,500 for four years.
- Prasarana Malaysia Bhd plans to roll out 150 electric buses and construct three new bus depots with a budget of RM600 million.
Tourism – Visit Malaysia Year 2026
Malaysia aims to welcome 26.1 million foreign tourists in 2026, projecting an estimated domestic spending of RM97.6 billion. RM350 million is allocated to boost tourism activities, with RM80 million dedicated to maintaining Unesco heritage sites.
Conclusion
The Madani Budget 2024, under the leadership of Datuk Seri Anwar Ibrahim’s government, addresses diverse issues impacting the lives of Malaysians. It emphasizes economic development, housing, climate mitigation, and green initiatives, reflecting a commitment to improving the quality of life for all citizens and preventing social problems associated with urban decay.
